Supplementing wind power into an electric grid affects the power quality. The influence of the wind turbine in the grid system concerning the power quality measurements are the active power, reactive power, voltage variation, harmonics, flicker and electrical behavior of switching operation and these are measured according to national/international guidelines. This paper demonstrates the power quality issues due to installation of wind turbine with permanent magnet synchronous generator (PMSG) to the grid. A STATCOM is connected at the point of common coupling with a battery energy storage system (BESS) to alleviate the power quality issues. The STATCOM control scheme for the grid connected wind energy generation system for power quality improvement is simulated using MATLAB/Simulink. The simulation results show that the STATCOM provides reactive power support to the load and the power factor at the source side is maintained at unity.